Road transport is the transport of passengers or goods on roads. Business operating in this complex industry such as road transport, haulage and logistics often has to face strong challenges from the regulatory and tax authorities, from which some of these outlined below:
– Tax issues due to regular usage of vehicles by the drivers for personal travel.
– Value Added Tax (VAT) issues due to reclaiming of input vat on fuel and subsistence expenses.
Due to such high risk involved in the haulage, road transport and logistics sector the business strongly require expert accountancy support of a firm with an in-depth knowledge of the unique issues involved in the sector along with tips and tricks to be protected from such issues.
WeAccountax also aware of many other unique issues involved in the logistics, haulage and road transport sector such as:
Professional team of WeAccountax is still on your doorstep to manage these issues in these areas through:
Industry Specific International Financial Reporting Standards
In addition to this the road transport, haulage and logistics sector have to face many specific and complex International Financial Reporting Standards. The expert team of WeAccountax has the perfect knowledge and skills regarding International Financial Reporting Standards specific to transportation, haulage and logistics sectors.
Some standards are outlined below which are particularly important for Road transport, haulage and logistics sector:
1. IAS 17 – Leasing
A lease agreement where all the risks and rewards of ownership transfer substantially to the lessor, and also give rise to asset and liability recognition by the lessee and a receivable in the books of the lessor.
A lease agreement where the asset remaining recognized by the lessor and result in expense recognition by the lessee.
IFRIC 4 – Which underpins criteria to in determining Whether an Arrangement Contains a Lease
SIC-15 – Operating Leases – Incentives
SIC-27 – Evaluating the Substance of Transactions in the Legal Form of a Lease
2. IAS 16 — Property, Plant and Equipment
Which prescribes the accounting treatment for property, plant, and equipment. Explains the criteria initial recognition of assets, their carrying values, and the depreciation charges and impairment losses.
Emerging Changes in International Financial Reporting Standards
Organizations have to keep its accountants up to date with emerging issues in international accounting standards and accounting principles. So they can deal with financial reporting and tax issues. Management should have the knowledge that IFRS standards and accounting principles are under constant change. However, not all such changes are significant to road transport, haulage and logistics sector, but some of these emerging changes will entail vigilant consideration and sound equipped application by your accountants and management dealing with the road transport, haulage and logistics sector. So this is essential for accountants & management have an obvious Knowledge of how forthcoming standards changes likely to impact in many ways to the road transport, haulage and logistics sector.
The most significant areas which require particular attention of management and accountants include areas such as short term and long term strategic plans for the business, the commercial activities of current and future, communications with stakeholders, processes and controls of financial reporting and framework, operational structures, processes and employee training and development and existing IT systems.
However, changes in IFRS trigger challenge to all industries and sectors. But numerous challenges are unique to sector, such as road transport, haulage and logistics. Specialized team of WeAccountax has the precise knowledge regarding current and emerging changes specific to the sector in which you are doing business e.g. road transport, haulage and logistics.
WeAccountax team welcomes the opportunity to be part of your team in achieving your financial and business goals. Contact to one of our industry expert to explore how we can help you.